Pubs in battle to survive the summer in coronavirus lockdown
Marston’s today described any prospect of pubs being closed for the summer as potentially “disastrous”.
It said it was concerned the lockdown could continue for a prolonged period.
And it warned that pubs could be lost if the financial cost of the closures continues to mount up.
The company’s director of estates, Ed Hancock, says emergency Government support is helping for now.
He said: “It’s a worrying time. The Government has put grant funding in to support a lot of pubs. But the longer it goes on the more it puts into question pubs’ futures.”
The West Midlands-based brewer has hundreds of pubs across the region.
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It says it has been “asking questions” of the Government to get some kind of guidance on when pubs could be allowed to reopen, although it says safety must always come first.
There is no sign of when lockdown rules will be relaxed amid warnings that the virus will not be beaten totally until a vaccine is developed.
Mr Hancock warned: “There is no doubt pubs being shut for most of the summer would be damaging for Marston’s. We are not looking at the viability of pubs on that basis.
“We believe we have got good pubs and we think people will want to go back to pubs when they are able.”
Other breweries are having to adapt to survive.
Shane Parr, who runs Stonehouse Brewery in Oswestry with wife Alison, said turnover was down by about 70 per cent.
He said the company had been able to mitigate some of the lost sales by offering a take-out service from the brewery, and by diversifying to provide a hand sanitiser.
“Thankfully we are not as big as some breweries, which means we have been able to adapt,” says Mr Parr. “It’s really hard, 80 per cent of our sales used to come through selling beer to pubs, and overnight that has disappeared,” he says.
“We have an off-licence at our brewery, where people can come and buy bottled beers, and people can stay in their vehicles and sound their horns if they prefer, and we’re also doing a delivery service for people who live within 10 miles of us.”
Mr Parr said about half of the brewery’s dozen staff had been furloughed.
He believed the brewery was operating at a small loss at the moment, and would be able to survive providing the lockdown did not go on for too long,
“We’re just taking it month by month,” he said.
“If the lockdown went on for another month, then we would be fine, but if it went on for much longer then that would be very difficult.
“If it goes on for months and months, then the only way we could carry on would be by borrowing more and more money, and when, as a business, you are borrowing money just to carry on trading, you have got a p
Government support need for pub industry
As Britain’s biggest ale brewer, with an annual turnover of £1.17 billion, Marston’s is in a stronger position than most to weather the storm.
But as the owner of hundreds of pubs all over our region which have been forced to shut for more than a month, its income has taken a major hit.
The company’s director of estates, Ed Hancock, says emergency Government support will ensure its pubs survive for now, but the longer the lockdown goes on their futures will become less secure.
Recent reports suggest pubs and restaurants could stay closed until at least July as part of efforts to try and suppress Covid-19. There are some that predict the closures could last even longer.
“It’s a worrying time,” Mr Hancock says.
“The Government has put grant funding in to support a lot of pubs. But the longer it goes on the more it puts into question pubs’ futures.
“Our approach is to work with with our partners to see how we can support them. This is no-one’s fault. Our role is making sure people are in business on the other side.”
Thousands of staff have been furloughed, while Marston’s suspended rent payments immediately in an effort to ease the burden on its pubs.
They could, however, have to pay that rent back at a later date, sparking concern for landlords.
Mr Hancock admits going part or a whole summer with Marston’s pubs sitting closed will be a disaster for the company, but says closing pubs for good is not on the agenda at the moment.
“There is no doubt pubs being shut for most of the summer would be damaging for Marston’s,” he says.
“We are not looking at the viability of pubs on that basis. We believe we have got good pubs and we think people will want to go back to pubs when they are able.”
The point Mr Hancock raises is an interesting one – how will the public react when a sense of normality returns?
Will people flock to pubs and restaurants in large numbers or will there be a lingering fear factor associated with coronavirus?
“I think it has to be a concern,” he says “We don’t know how people will react. It’s the great unknown. But at our heart we are sociable beings.
“In the early days, before pubs shut, we were being very clear on cleaning down. Customers can see we are taking Covid-19 very seriously.
"It might, in some cases, change how people use social facilities. It’s not just pubs, there are crowds everywhere. Where pubs are part of communities people want to use them.”
Mr Hancock says Marston’s chief executive Ralf Findlay has been gently asking the question about when pubs will be allowed to open again.
He acknowledges that, when lives are at risk, pubs of course come low down on the list of priorities, but adds that jobs and livelihoods will be at stake the longer they stay closed are also at stake.
“We want pubs to open safely,” he says. “We don’t want pubs to open too soon when it’s not right.”
Times are tough got all companies who rely on brewing beer or who have pubs to fill.
Why we are determined to keep brewing
Sales at Ludlow Brewing Company are down by about 80 per cent compared to what they normally would be, although managing director Gary Walters says the brewer is managing to break-even and retain most of its 35 full-and part-time staff.
“We are quite lucky in that we already had an off-licence as well as a brewery and bar, and we have restricted our hours to between 10am and 3pm,” he says. We are also doing home deliveries, but where we used to deliver to 10-15 pubs on our delivery run, at the moment we are doing 20-25 home deliveries instead.
“We are covering our overheads and staff wages, and we have been able to keep most of our staff on, although a few have been furloughed because they wanted to for family reasons.”
Mr Walters says the home delivery service is covering most of the county.
“We have now got a few regular customers who are ordering every other week, ordering a couple of dozen bottles,” he says.
“The nice thing is seeing how pleased they are when their beer is delivered.”
Fownes Brewery, in Brierley Hill, near Dudley, is another business searching for ways to keep up revenue.
It has also launched a new home-delivery service to keep their customers topped up while the pubs are closed.
James Fownes, who runs the business with brother Tom, says it made sense to be pro-active when the crisis hit.
He says he has been heartened by the response from his customers, who have stayed loyal.
He said: “When the pubs closed we had a lot of stock leftover that was due to go to them, so we decided to reach out to our customers and start the delivery service.
“We’ve taken out the middle man and are taking out beer straight to people’s homes.
“We launched the home delivery service last weekend and we have sold about 70 cases of beer, which is about half of what we would usually sell but we have had a great response and lots of support.
“We’re really grateful for people wanting to keep supporting our local business.”
The duo are delivering mixed cases of bottles of beer to customers who live within a 30 mile radius of the brewery.
James added: “We’ve also teamed up with local distiller Dr Eamers’, and if this continues then we will expand what we can deliver to a range of gins and bar snacks.”
